When you prepare your loan application it is critical that you include all of the relevant information to the potential lender. The more quality information the bank has about your business, your plans and your industry, the more likely you will be successful in your application.
If you have used an adviser or accountant to prepare your financial information, make sure you understand it before meeting with the lender. Complete this short module to step through preparing a loan application.
What is the bank looking for in your loan application?
Some of the questions that need to be answered in the loan application include:
- What is the purpose of the loan?
- How much do you want to borrow?
- When will the funds be required?
- How long do you need to borrow the funds for?
- How will the loan be repaid?
- What is the risk to the lender?
All potential lenders will consider what is commonly referred to as “The 5 C’s” of credit to assist in identifying the level of risk they will be undertaking. Click here for more information about the 5 C’s.
Lenders also need to understand how your business operates, what you see for the future of your business and the financial results expected. Always include a current business plan as part of your loan application. You can download a business plan template from the Resources page.